2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS MEGACABLE. As at December 31, 2020 and 2019, the Group owned 1,280,000 and 2,575,152 series "A" shares (treasury shares), respectively. In the periods ended December 31, 2020 and 2019, no expenses were incurred in issuing, placing and registering shares. Repurchase of shares Ordinary Participation Certificates (CPO, acronym in Spanish) are registered securities representing the provisional right on the returns and other benefits of titles or assets integrated in an irrevocable trust issued by the Group to be listed on the Mexican Stock Exchange, one CPO is equivalent to two series "A" shares. i. During the year ended December 31, 2020, the Group purchased 640,00 Ordinary Participation Certificates (CPOs), which are equivalent to 1,280,000 shares of the variable portion of series "A" shares. The amount for said purchase was $43,529 During the year ended December 31, 2020, the Group sold 1,287,576 CPOs, equivalent to 2,575,152 shares of the variable portion of series "A" shares, for $93,377 The result of the operations mentioned in the two paragraphs above generated an effect of net sales of CPOs for 647,576, equal to 1,295,152 shares of the variable portion of series "A" shares, these operations represent 0.07% of the total shares, resulting in a net movement of $49,848. ii. During the year ended December 31, 2019, the Group purchased 1,287,576 Ordinary Participation Certificates (CPOs), which are equivalent to 2,575,152 shares of the variable portion of series "A" shares. The amount for said purchase was $103,452. During the year ended December 31, 2019, the Group sold 233,633 CPOs, equivalent to 467,266 shares of the variable portion of series "A" shares, for $20,241. The result of the operations mentioned in the two paragraphs above generated an effect of net purchases of CPOs for 1,053,943, equal to 2,107,886 shares of the variable portion of series "A" shares, these operations represent 0.12% of the total shares, resulting in a net movement of ($83,211). Dividends At the Ordinary Shareholders' Meetings held in 2020, the Company's shareholders agreed to decree dividends by cash payment via bank transfer for a net amount of $1,529,359. Said dividend represented a dividend per share of $0.89 per series "A" share and $1.78, per "CPO" equal to two series "A" shares. At the Ordinary Shareholders' Meetings of the subsidiaries, Corporativo de Comunicación y Redes de Gdl, S.A. de C.V. and MCM Holdings, S.A. de C.V., declared dividends of por $90,160 and $29, respectively, corresponding to the minority shareholders of both companies. At the Ordinary Shareholders' Meetings held in 2019, the Company's shareholders agreed to decree dividends by payment by bank transfer for a net amount of $1,875,602. Said dividend represented a dividend per share of $1.09 per series "A" shares and $2.18, per "CPO" equal to two series "A" shares. The Ordinary Shareholders' Meeting held in 2019 by the subsidiary, Corporativo de Comunicación y Redes de Gdl, S.A. de C.V. and Entretenimiento Satelital S. A. de C. V., declared dividends of $63,689 and $1,945 corresponding to minority shareholders of both companies. Reimbursement of minority shareholders At the Ordinary Shareholder Meetings of subsidiary Productora y Comercializadora de Televisión S.A. de C.V., a reimbursement of shares for $ 25,070 corresponding to minority shareholders was made. b. The balances of the fiscal accounts of the Company's equity (Megacable Holdings) are: Capital contribution account (CUCA) Net taxed profits account (CUFIN) C. Tax provisions related to equity: 2020 5,091,876 200,110 2019 4,936,381 191,302 The profit for the year is subject to the legal provision that requires that at least 5% of the profit for each year be used to increase the legal reserve until it is equal to one fifth of the amount of paid-in capital. In October 2013, the Mexican Congress and Senate approved the issuance of a new Income Tax Act (LISR) that entered into force on January 1, 2014. Among other aspects, this Law establishes a 10% profits tax generated as of 2014 on dividends paid to residents abroad and individuals. In the event of a capital reduction, the procedures established by the Income Tax Act (LISR) provide that any surplus of equity over the balances of the contributed capital accounts be given the same tax treatment as that applicable to dividends. 68

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